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Maximizing Direct Mail Communications

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Maximizing Direct Mail Communications MAXIMIZING DIRECT MAIL COMMUNICATIONS THE DIRECT MAIL ADVANTAGE Peter W. Friedrich Direct Mail Solutions Consultant Pitney Bowes Presort Services October 25, 2012 . Defining Direct Mail . The Case for Direct Mail . Industry News . Optimization Options Agenda By 2016 Standard Mail will account for 56% of all mail volume ‐ According to the USPS 2 Industry Trends: The Growth of Direct Mail . In 2010 Standard Mail® represented 51% of USPS volume…projections show that growing to 69% by 2020 . 77% of households either read or scan advertising mail sent to their household . Among various shapes of mail, postcards are the most likely to be read Source … 2011 DMA statistical fact book Direct Mail Defined . Most economical class of mailing offered . Two sub categories: Regular & Non‐Profit Mail . Postage rates can be based on a number of factors: . Content: What info does the piece convey? Direct Mail is . Format: Envelope, self‐mailer or postcard? typically an advertisement or . Size & Shape: Letter, flat, or parcel? solicitation for a Is it automation compatible? product or service . Weight: Over an ounce? Under 3.3 ounces? . Distance the Mail Travels: Can it be drop‐shipped? . Quantity & Density: How many pieces? What destinations? . Nonprofit status: Does your organization qualify for nonprofit rates? Non‐Profit Direct Mail Certain organizations may apply for authorization to mail at the Nonprofit Standard Mail rates. The eight categories of eligible nonprofit organizations are: . Religious . Educational . Scientific . Philanthropic (Charitable) . Agricultural . Labor 91% of Non‐profits use . Veterans Direct Mail . Fraternal Direct Marketing Association Response Rate Trend Report The Case for Direct Mail Benefits of Direct Mail . Qualifies for additional "workshare" pricing discounts . It’s tangible, portable and non‐obtrusive . Recall is higher than radio and television – people don’t listen to the radio or watch television with a pen and paper in hand! . It’s targeted. Reach specific audiences based on demographic and psychographic segmentation . You can mix and match lists to connect with best prospects, selected customers or specific interest groups with each segment 77% of Consumers Look Through Their Mail Daily! ‐ According to The USPS More Benefits of Direct Mail Measurable . Offer‐redemption shows effectiveness of your campaigns and ROI . Allows for easy comparison testing of offers, formats and segmentation Personalized . Data mining and print technologies enable use of name, and other information to tailor each offer to recipients’ interests and buying habits . “Real” personalization increases open & response rate Multiple Formats . Postcard: Simplest & least expensive; digital production permits personalization. Self‐mailers & booklets: More space for multi‐page message and graphics . Enveloped Letters: Can include reply cards and postage‐paid return envelopes. Secure way to include personal data for recipient Complements other Channels . Direct mail can be used in conjunction with other forms of advertising. Using a post card that drives traffic to a website via a QR code . Email or telemarketing that previews a mailing or follows up right after a mailing . A Facebook, Pinterest or LinkedIn ad that is tied directly to a direct mail campaign The Tangible Direct Mail Advantage! A major financial institution re‐engineered their direct mail process and in nine months: . Saved over $1M in postage after optimization . Reduced average national in‐home by almost a day Industry News & Events The USPS®: Standard Mail “ The Plan”: Effective Utilization; Cost Reduction; Resource Optimization . The USPS’s proposed changes: . Five‐day delivery . Eliminate expected overnight delivery of First‐Class® mail & Periodicals . Processing facilities reduced from over 500 to under 200 . Relief from contractual no‐layoff policy . Elimination of 220,000 jobs . Change to Health insurance and retirement plans . First round of closures is complete, but no further consolidations will occur this fall. Closures will resume after January, 2013. Delivery expectation remains at 3‐10 days for standard mail . Some modifications to business mail acceptance locations or hours of operation have occurred. DSCF discounts will continue to be available for mailings entered at BMEUs that remain in impacted facilities. Design and Barcode Changes . Effective January 5th, 2013 . Folded mail piece changes: . Number of tabs . Size of tabs . Position of folds and flaps . Paper weight minimums . Minimum and Maximum Dimensions change . Other changes . POSTNET barcode officially “retired.” Mail pieces that use it will no longer qualify for automation rates. Mailers must use at least basic service Intelligent Mail® Barcode. Full service IM®BC will be required starting in January 2014 Changes To Folded Self Mailers – January 2013 . The 2D Barcode Promotion Returns! . November 2012 for Presorted and Automation Standard Mail® letters and flats bearing two‐dimensional mobile barcode . Using smart phones consumers can access account data, promotions, educational content and more... from anywhere, at any time . Drives interactivity and brand involvement . Supports an alternative channel of customer communications . Provides service information on‐the‐spot & access to communication documents QR codes provide value for mailers! Add them to transactional mail! USPS® Mobile Barcode Applications QR codes encourage desired consumer actions . Register to receive future documents electronically (eConsent) . View a video . Redeem a discount for service or offer . Make a purchase “Make no mistake about it. Nothing beats direct mail in terms of its ability to target and generate an order,” says a director of promotional services for a major clinic. “But the more ways we can find to expand and work with the digital channel, the more we will do so.” Optimization Approaching Optimization Combine Strategies to Maximize Postage Savings & Optimize transportation . Merge multiple letter size mailings into a single mailstream . Optimizes postage rates . Stamped mail . Permit mail . Metered mail . Prebarcoded Commingling Value Proposition . Reduce Postage Costs . As postage rates and transportation costs continue to rise, being able to offer money saving solutions makes you more valuable . Predictable and Consistent In‐Home Delivery . IMb tracking and planned drop schedule make planning campaigns easier . Operational Cost Savings . Just about every letter shop can save money because they do not have to sort mail, prepare it for the USPS or take it to the BMEU. You can use less labor or just run equipment faster and drive more revenue per hour worked . Quality Assurance . Vendors should have the highest quality standards available and strong relationships with The USPS What Sort of Mail “Fits”? National Mailings that All “Origin Multiple job Large mailings Mailings of have multiple Entry” Mail, streams that that can drop 500,000 versions or including the make on multiple pieces or less “cells” residual (non‐ production days but have drop ship) complicated to be staged portions of and dropped mail‐streams all at once to maximize postage saves Logistics ‐ Postal Optimization . USPS Network Restructuring . Further distances to SCF drops . What is the impact on logistics after the USPS changes? . Transportation partnership? What to Look For in a Postal Optimization Partner . National Network . Postal Knowledge . Logistics . Security . Volume Discounts . Technology . Innovation Pitney Bowes Presort Services . Experts in mail processing and transportation with systems and technology you can count on. We develop partnerships between mail owners, mail producers and the USPS. Our client focus is not just on your mail, but your business ‐ postal experts who will act as your consultants on postal issues. Solutions to save postage and improve delivery for Standard mail. Flat‐rate per piece pricing ‐ makes it easy. Leaders in implementing the Intelligent Mail Barcode and the Intelligent Mail Tracking Program. Questions? For more information: . Website: www.pb.com/mailservices . Email: [email protected] THANK YOU..
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